New Delhi, Apr 7 (KNN) The Government e-Marketplace(GeM) has recorded a cumulative Gross Merchandise Value (GMV) of Rs 18.4 trillion since its launch in 2016, with FY 2025-26 alone contributing Rs 5 trillion across 75.7 lakh orders, as per official data.
MSMEs Drive Nearly Half of Procurement
Micro, Small and Medium Enterprises (MSMEs) emerged as key beneficiaries and accounted for 47 percent of total order value in FY26. They represented 73 percent of active sellers and secured 68 percent of total orders, amounting to over 51 lakh orders worth Rs 2.36 trillion.
This significantly exceeds the government’s 25 percent procurement mandate for MSMEs. As per official data, more than 11 lakh MSEs are registered on the GeM platform.
GeM CEO Mihir Kumar said the platform’s inclusive design has lowered entry barriers for small businesses, enabling strong participation from women-led MSMEs, SC/ST entrepreneurs and startups.
He noted that micro and small enterprises alone contributed over 45 percent of GeM business, with more than 20 percent growth in participation from women-led and startup ventures.
AI Tools Strengthen Transparency and Efficiency
GeM Deputy CEO Bharat Bhushan Verma said that using AI tools has helped improve procurement quality and transparency as over 90,000 faulty catalogues were removed from 19 lakh listings.
Further, he said that price intelligence has helped small sellers stay competitive as AI systems detect duplicate listings, collusion patterns, and irrational pricing, reported Business Standard.
The AI-powered Sanity Framework monitors risks such as buyer-seller collusion, cartelisation, order splitting and product misrepresentation.
States Lead Procurement Growth
Procurement trends in FY26 show strong momentum as state procurement rose 38.3 percent, led by Uttar Pradesh, followed by Gujarat and Maharashtra. Central ministries recorded 20.5 percent growth and autonomous bodies saw a 33 percent increase.
However, Central Public Sector Enterprises (CPSEs) registered a 22 percent decline, largely due to reduced mining-related contracts.
Balanced Growth Across Products and Services
Products contributed 51 percent of GMV while services accounted for 49 percent, as per the latest data.
GeM has facilitated several large-scale procurements, including 318 crore vaccine doses, 44,000 km optical fibre, 77 lakh computers, 110 MW floating solar project at Kadana Dam in Gujarat and over 29 crore sanitary napkins.
Buyers reportedly achieved 8 percent savings through competitive bidding on the platform.
Key Takeaway
GeM’s growth underscores the increasing role of digital public procurement in empowering MSMEs and improving transparency in government spending.
With strong MSME participation and AI-driven governance, GeM is emerging as a critical pillar of India’s public procurement ecosystem, driving inclusion, efficiency, and scale.
(KNN Bureau)
